Tuesday, January 28, 2014

How To Get A Greater Average Check


       Okay, so I assume you been in business long enough to have some numbers to evaluate and you came across a common problem, your making some cash but what if you can increase the average amount of cash per transaction. Let’s just say you own a local coffee shop for example, you make $336,000 a year, $28,000 a month, $7,000 a week, $1,000 a day and you see 100 customers a day. That makes your average check $10.00. Let’s say a small coffee is $2.00, a medium is $2.50, and a large is $3.00 and the majority of your customers are buying small coffees because times are hard etc... Let’s say we get 50% of our customers to buy large sizes instead of small sizes. That adds $0.50 to our average check ($10.50). So now we are making $1,050 a day, $7,305 a week, $29,400 a month, and $352,800 a year. That is $16,800 more a year you could be making. 

       Now I bet your asking, if times are hard etc. then how do I get my loyal customers to by the large sizes instead of the small sizes? Well the answer is very simple, but it might take some practice and communicating with your loyal employees to get the job done. The first step would be to have a large cup on display next to the register, or the counter, or near you somewhere. When the customer is ready to order be sure to listen, and make them feel welcome, like a regular. You can accomplish this by simply smiling and making small talk and offering something to eat with their coffee (which also increases your average check if you ask every customer) and then ask them there name. After establishing that personal relationship hit them with the question, "Is This Size Okay For You?" If you did everything right and established that relationship with the customer and the conversation flowed casually then you should have yourself an up sell. Keep in mind this won’t work every time because sometimes the price really isn't the reason for them not buying the large size, it might really be that they can’t finish a large coffee, but most of the time it’s the price. 

       There is also a psychological part to people picking the small. In their head if you use the word large, there thinking large amounts of money. So when addressing the cup sizes use 12 oz. 16 oz. and 20 oz. never use small, medium, and large.

       If your small business does not pertain to beverages there are other things you can still do to increase your average check like up selling sides. Tacking on a side of fries with a meal, or garlic bread with spaghetti, anything to increase that average check. You can also offer discounts like B.O.G.O. which is Buy One Get One free if you’re not familiar. Or just giving some sort of discount when making a bulk purchase. A lot of times people don't even care how much the discount is. It can be 10% and you still would be increasing your average check. That is all I have for this post so go ahead and try out these new tools and techniques and I hope you can increase your avg check, Thank you.



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